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Abstract

The US is the fourth largest importer of wine in the world. Wine consumers do not freely substitute one type of wine for another therefore each segment of the industry could represent a niche market for a certain type of wine. Wine is almost exclusively sold through labelling and brand recognition. Brand strength can be measured. Well known brands are consistantly out selling others. Varietals, e.g. Chardonnay, have shown the most growth in recent years. US wine imports have declined substantially since 1985 but certain categories/varietals/brands still show growth. Wine should be pricecompetive within the quality category it is perceived to be. There are distinct price boundaries or price points for any given varietal. The relative medium priced wines, $5-10 per bottle, show the most growth. SA wines can be exported profitably within most categories. However, selecting the target market and price category to match the product and brand is important.

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